Review of the scheme to control the cost of branded health service medicines
This consultation considers the proposed review of the statutory scheme to control the cost of branded health service medicines.
The statutory scheme is set out in legislation in the Branded Health Service Medicines (Costs) Regulations 2018 (the regulations). It is one of 2 schemes, alongside the 2019 voluntary scheme for branded medicines pricing and access (VPAS), that control the prices of branded medicines to the NHS. The 2019 VPAS agreement expires at the end of 2023.
The Department of Health and Social Care is negotiating to agree with industry a successor to VPAS to take effect from 1 January 2024.
The government is proposing updates to the statutory scheme to make sure that the scheme can continue to meet its objectives from 2024 onwards, whether this is alongside a successor voluntary scheme or as a standalone scheme in the absence of this.
The consultation sets out proposed amendments in 3 main areas:
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increasing the allowed growth rate, which will have the effect of changing the payment percentages
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revising which sales of branded medicines are exempt from scheme payments
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a new approach to control spending on older branded medicines (the ‘life cycle adjustment’)